Sovereign Trust Insurance (NGX: SOVRENINS) has received board approval to raise NGN5bn ($6.2mn) through a rights issue, marking the initial phase of its recapitalisation programme under new Nigerian insurance regulations.
The company announced that its board, chaired by Abimbola Oguntade, approved the fundraising as part of its phased compliance with the Nigerian Insurance Industry Reform Act (NIIRA), which requires higher capital buffers and stronger solvency standards. The NGN5bn ($6.2mn) offer will be conducted via a rights issue scheduled to close in Q1 2026.
The move follows shareholder resolutions passed at the firm’s thirtieth annual general meeting in September 2025, where investors authorised the insurer to raise as much as NGN20bn ($24.8mn). The additional capital is intended to strengthen the balance sheet, improve liquidity, and support underwriting growth. Shareholders also approved a five-kobo per share dividend.
Managing Director Olaotan Soyinka said the organisation aims to position itself among Nigeria’s top five insurers, supported by operational efficiency, digital service channels and expanded premium volumes. He encouraged shareholders to subscribe fully to the rights issue, citing the company’s focus on innovation and customer-centred initiatives.
Sovereign Trust Insurance reported that it is in the final stages of obtaining regulatory approval and is working with issuing houses, legal advisers and auditors to complete the offer process. The Nigerian Exchange recorded sustained gains in the company’s share price in October 2025 after the capital strategy was announced, reflecting investor confidence in the insurer’s outlook.
The fundraising and dividend announcement come as Nigerian insurers adjust to NIIRA-driven capital requirements aimed at strengthening the sector and improving operational transparency.
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